MAKE no mistake, the next 12 months will be challenging. Our economy needs the right support if it’s to grow and avoid the many pitfalls that lie ahead.

MAKE no mistake, the next 12 months will be challenging. Our economy needs the right support if it’s to grow and avoid the many pitfalls that lie ahead.

Here, the Welsh Labour Government has direct control of the levers to support small businesses, encourage inward investment and drive job creation. In fact, we’re the only part of the UK where Labour still has that responsibility. Here the party that told the incoming UK Government there was “no money left” is the party charged with getting Wales moving. The Minister making those decisions – the ones that need to get our businesses expanding, employing and exporting – recently told the National Assembly she “regrets capitalism”.

But there is some good news.

Even though her private thoughts probably gave her considerable anguish, that Minister recently caved in to Wales-wide pressure and confirmed the creation of enterprise zones here. Announced for England in March by the UK Government, I am more than happy to congratulate the Welsh Government for making the right decision. What our economy now demands is more detail and urgent roll-out.

We’ve got to be positive. We’ve got to be robust. After more than a decade of Labour rule, Wales is still the poorest part of the UK. Now is not the time to put our feet up. Our businesses need imaginative decisions. What about business rates? For months we’ve said they should be abolished for businesses with a rateable value of up to £12,000. That would have an immediate effect. It would allow money to go straight back into business development and recruitment.

What about the Olympics? There are undoubtedly economic benefits to be gained and Labour must ensure it takes advantage of the eyes of the world focusing firmly on Britain.

What about European funding? Even a Labour MEP has admitted this probably hasn’t been “spent wisely” in Wales. Compare this to the benefits neighbouring Ireland has gained from European funding; improving their transport and bettering their communication infrastructure to create an attractive area for investment.

When the next round of funding opens, it needs to be targeted correctly and the right Welsh projects need to benefit.

The current eurozone crisis means that times will remain tough for the foreseeable future – but the UK Government is fighting tooth and nail for economic recovery, better trading and growth conditions and for more opportunities for young people.

By working together – and putting political differences aside – the UK and Welsh Governments can take forward the policies to get more people back to work. That should be the aim and that should be the direction Welsh Labour moves in. No more dithering. No more inactivity.

Wales can progress. We just need the right vision and the right policies.

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